Economy
Oman's Basic Statute of the State expresses in Article 11 that the "national economy is based on justice and the principles of a free economy."
Omani citizens enjoy good living standards, but the future is uncertain with Oman's limited oil reserves. Other sources of income, agriculture and industry, are small in comparison and count for less than 1% of the country's exports, but diversification is seen as a priority in the government of Oman. Agriculture, often subsistence in its character, produces dates, limes, grains and vegetables, but with less than 1% of the country under cultivation Oman is likely to remain a net importer of food.
Since the slump in oil prices in 1998, Oman has made active plans to diversify its economy and is placing a greater emphasis on other areas of industry, such as tourism.
Metkore Alloys is due to build a world-class 1,650,000-tonnes-per-annum capacity ferro-chrome smelter in Oman with an envisaged investment of $80 million.
A free-trade agreement with the United States took effect 1 January 2009, eliminating tariff barriers on all consumer and industrial products, also providing strong protections for foreign businesses investing in Oman.
Tourism, another source of Oman's revenue, is on the rise. A popular event is The Khareef Festival held in Salalah, Dhofar, which is 1,200 km from the capital city of Muscat, during the monsoon season (August) and is similar to Muscat Festival. During this latter event the mountains surrounding Salalah are popular with tourists as a result of the cool weather and lush greenery, rarely found anywhere else in Oman.
Oman's foreign workers send an estimated US$30 billion annually to their Asian and African home states, more than half of them earning a monthly wage of less than US$400. The largest foreign community is from the south Indian states of Kerala, Tamil Nadu and Karnataka or come from Maharastra, Gujarat and the Punjab, representing more than half of entire workforce in Oman. Salaries for overseas workers are known to be less than for Omani nationals, though still from two to five times higher than for the equivalent job in India.
The Oman Ferries Company maintains the two diesel-powered, high-speed, car ferries – Shinas and Hormouz. The ferries are used for travel between Muscat and Khasab. Khasab is strategically located in Musandam on the southern tip of the Strait of Hormuz and is controlled by Oman. Mainland Oman is separated by a small strip of UAE territory from Musandam.
Read more about this topic: Religion In Oman
Famous quotes containing the word economy:
“The aim of the laborer should be, not to get his living, to get “a good job,” but to perform well a certain work; and, even in a pecuniary sense, it would be economy for a town to pay its laborers so well that they would not feel that they were working for low ends, as for a livelihood merely, but for scientific, or even moral ends. Do not hire a man who does your work for money, but him who does it for love of it.”
—Henry David Thoreau (1817–1862)
“Unaware of the absurdity of it, we introduce our own petty household rules into the economy of the universe for which the life of generations, peoples, of entire planets, has no importance in relation to the general development.”
—Alexander Herzen (1812–1870)
“Wise men read very sharply all your private history in your look and gait and behavior. The whole economy of nature is bent on expression. The tell-tale body is all tongues. Men are like Geneva watches with crystal faces which expose the whole movement.”
—Ralph Waldo Emerson (1803–1882)